(Central News Agency reporter Lai Yanxi, Taipei, December 9, 2022) Although the latest Shanghai Export Container Index (SCFI) fell less than the previous week, it fell for 25 consecutive weeks. The international freight rate is slow, and the revenue of the three container companies Evergreen, Yangming and Wanhai in November simultaneously decreased by more than 10% compared with October; Wanhai also announced the offer to sell and dismantle old vessels, requiring buyers to send the vessels directly to the environmentally friendly dismantling yards Dismantle.
The Shanghai Shipping Exchange announced today that the latest SCFI index fell for 25 consecutive weeks, but the decline narrowed to 2.84% from the previous week. Among them, the freight rate of the Far East to Mediterranean started to recover, up 0.76% from the previous week.
Slow international freight rates affect Sanxiong Containers’ performance in November. Evergreen (2603) argued that inflation, the Russo-Ukrainian war, and China’s zero-clearance policy have led to continued declines in freight rates. Revenue in November was 36.093 billion yuan, a monthly decline of 20.93%. An annual decline of 29.29%; cumulative consolidated revenue for the first 11 months was 597.998 billion yuan, an annual increase of 36.79%. However, as the recent congestion situation in Hong Kong is gradually eased, it will help save operating costs.
Yang Ming (2609) said that the still weak market demand led to a drop in freight rates, which led to a monthly decrease of 18.25% in November revenue and an annual decrease of 43.13% in 19.612 billion yuan; accumulated revenue for November 1 was 359.566 billion yuan, an annual increase of 20.11%. Yang Ming pointed out that although China has gradually relaxed its zero removal policy, the Russia-Ukraine war, energy and inflation crises have continued to weaken the economies and consumer demand of various countries, and the global economic momentum is facing challenges.
Wan Hai (2615) stated that sluggish demand has affected ocean freight rates. Revenue in November was 12.988 billion yuan, a monthly decline of 13.34% and an annual decline of 43.27%. Cumulative revenue for November 1 was 247.41 billion yuan, an annual increase of 20.83%.
In response to the addition of the new fleet, Wan Hai announced an offer on the 8th, with the receipt date ending on December 16th, and asked the buyers of these 10 vessels not to put the vessels into service on the market, but to send the ships directly to the Green The scrap yard carries out the dismantling directly.
Looking to the future shipping market, Evergreen believes there is still a need to wait and see customer inventory situation ahead of the Lunar New Year and shipping demand; Yang Ming pointed out that some port terminal operations continue to be affected by strikes caused by inflation and labor problems, and the US West Terminal and railway work negotiations Progress remains stalled, adding uncertainty to the return to the normality of supply chains.
